In uncertain economic times, one of the ‘go to’ investments that anyone should consider is property. Whilst nothing is 100% safe these days, property is one of the few modern-day investments along with gold that is tangible and over the decades has increased in value. Of course, there will be peaks and troughs along the way but as a rule there will be an upward trend.
So why is property seen as a reliable investment? There are many theories given as to why property is a sound investment. Firstly, it is built on land, something that is finite and therefore more can’t be produced. As with all scare resources there will be a guaranteed certain level of demand in normal circumstances. Secondly, as we mentioned, property in tangible and people tend to trust something that they can see or touch. Thirdly, property has a practical use whereas most other investments don’t have this luxury so overall you can see that there are many reasons to look towards property for investment purposes.
Another reason for investing in property is that it is often local factors that play the most significant role in a property’s value. This is the location, the type of property and of course local economic conditions but international factors tend to have less of an impact than they do with other investments. The fewer factors that influence a property’s price, the lower the risk and therefore the investment is more secure.
‘Safe’ investments are what most people look for but this is even more the case in more volatile times. Automatically people tend to assume that low risk means low return and often this is indeed the case but with property there is a little bit more scope. Investing in the right property in many locations in the world will realistically see returns in the region of 5-8% which is excellent for something viewed as low to medium risk.
Currently in Pattaya there is local, well established developer that is offering guaranteed rental returns of 10% p.a. for periods up to 20 years. This same developer, the New Nordic Group has been offering similar deals for around a decade and has a proven track record when it comes to paying all liabilities on time and in full. The guaranteed returns are absolutely fantastic in the current economic climate and are a perfect example of why property should be your ‘go to’ investment in uncertain times.